Customers of banks and credit unions, including HSBC Commercial Bank, may be affected by deceptive overdraft practices and even overdraft fraud.
HSBC has previously been targeted in lawsuits over its allegedly deceptive overdraft practices. In one such class action lawsuit, HSBC agreed to a whopping $30 million settlement.
The lawsuit alleged that the bank engaged in one of the popular overdraft practices, processing transactions out of order to charge the most it can in overdraft fees.
The class action lawsuit also claimed that the bank continuously allowed its customers to use their debit cards despite insufficient funds, charging an overdraft fee of $35.
Despite the lawsuit and the hefty settlement, HSBC maintains the view that these practices were not deceptive and violated no laws.
Unfortunately, deceptive overdraft practices at HSBC and other banks and credit unions may be continuing. In order to understand these deceptive overdraft practices, it is important to first understand the basics of overdraft fees.
What is Overdraft Protection?
Overdraft protection programs allow customers to pay for transactions even when they do not have the funds, and the bank charges a fixed overdraft fee between $25 and $35 to process the transaction.
Overdraft protection can seem like an attractive option for consumers, but it can actually cause significant financial problems for a customer.
However, many may opt in to these services without knowing the full extent of these programs, including excessive overdraft fees and other practices that may harm their bank accounts.
While the law requires that financial institutions cannot automatically sign customers up for overdraft protection and must be allowed to voluntarily opt in, many customers may not have been given all the information about their institution’s overdraft practices.
This can lead to customers paying more money than they would have if they had been fully aware of overdraft fee practices.
HSBC was accused of purposely processing their customers’ transactions out of chronological order so that they could incur the highest overdraft fees possible.
According to reports, financial institutions across the country make billions every year from money incurred by overdraft fees.
Deceptive Overdraft Practices
Financial institutions have been required to allow customers to voluntarily choose overdraft protection since July 1, 2010. However, banks have managed to develop a number of deceptive overdraft practices that allow them to profit heavily from overdraft fees every year.
These deceptive overdraft practices include:
- Marketing their excessive overdraft fees in a misleading way using terms like “overdraft protection,” “courtesy pay,” and “overdraft coverage”
- Processing transactions from high to low rather than chronological order to increase both the number and amount of overdraft fees after an account is overdrawn
- Reporting inaccurate balances to customers, allowing them to incur overdraft fees unknowingly on their account
- Purposely delaying deposits
- Using inaccurate balances to determine overdraft fees
Consumers who believe or suspect that they may be being charged improper overdraft fees or targeted by deceptive overdraft practices may want to speak with an attorney.
An attorney can help consumers determine whether or not these practices were proper, and give advice about the possibility of filing a lawsuit.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks and credit unions being investigated include, but are not limited to:
- State Employees Credit Union (North Carolina)
- Pentagon Federal Credit Union
- Boeing Employees Credit Union
- Alliant Credit Union
- Star One Credit Union
- First Technology Federal Credit Union
- America First Federal Credit Union
- Suncoast Credit Union
- American Airlines Federal Credit Union
- Digital Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Schools First Federal Credit Union
The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2026 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
Get Help – It’s Free
Join a Free Bank & Credit Union Overdraft Fee Class Action Lawsuit Investigation
If your bank and credit union charged you overdraft fees, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
Please Note: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client, if you qualify, or getting you dropped as a client.
ATTORNEY ADVERTISING
The choice of a lawyer is an important decision and should not be based solely on advertisements.
E-mail any problems with this form to [email protected]
PAID ATTORNEY ADVERTISEMENT: THIS WEB PAGE IS AN ADVERTISEMENT AND THE PARTICIPATING ATTORNEY(S) ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. The attorney in charge of this advertisement is T.Kick. It is not a lawyer referral service or prepaid legal services plan. Top Class Actions is not a law firm. Top Class Actions does not endorse or recommend any lawyer or law firm who participates in the network, nor does it analyze a person’s legal situation when determining which participating lawyers receive a person’s inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Top Class Actions does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys.
